Rio Tinto Limited (ASX:RIO, NYSE:RIO, LSE:RIO) could be stung with $US5 billion of writedowns from its aluminium and diamond businesses.
Deutsche Bank analysts have told The Australian the global miner’s aluminium business has a carrying value of about $US41 billion and a further writedown could be easily be realised in the full 2011 year result.
In addition, the paper reports analysts have cut up to 5 per cent, or about $US750 million, from Rio’s expected annual profit.
Rio has forecast $US1 billion in annual after-tax charges due to increased evaluation costs.
Rio Tinto reported a net profit of $7.5 billion in the first half of 2011.
